USD/JPY meets fresh supply as risk-off picks-up, back below 109

The USD/JPY pair finally broke its Asian consolidation box to the downside in early Europe, with the rate now meandering near daily lows struck at 108.86 some minutes.

The latest leg down in the major can be mainly attributed to renewed JPY buying, as demand for safe-havens strengthened amid intensifying risk-off moods on comments from the North Korean foreign minister.

North Korea’s foreign minister noted that his government is ready to go for a war, should the US choose to provoke, adding that they won't "keep its arms crossed" in the face of a US pre-emptive strike.

Moreover, thin market conditions aggravate the selling pressure in the spot, as most major global markets are closed today in observance of Good Friday. Focus now remains on the crucial US retail sales and CPI data lined up for release later in the NA session.

USD/JPY Technical levels                 

A break above 109.52 (5-DMA) would expose 110.00 (1-hr 100-MA) and 110.37 (1-hr 200-MA). On the other hand, a breach of support at 108.80/73 (Fib S1/ Classic S1) could yield a re-test of 108.50 (psychological levels) and 108.02 (Classic S3).